Financial Performance - The total revenue of China Modern Dairy reached RMB 7,078 million, representing a year-on-year increase of 17.6%[27]. - Cash EBITDA recorded RMB 2,434 million, reflecting a year-on-year increase of 7.5%[30]. - Profit attributable to owners of the Company reached RMB 1,019 million, marking a year-on-year increase of 32.3%[30]. - The Group's revenue increased by 17.6% year-on-year to RMB 7,078.5 million in 2021, up from RMB 6,020.3 million in 2020, primarily due to increased sales volume and average selling price (ASP) of raw milk, as well as revenue from feed sales following the acquisition of Fuyuan International[140]. - Raw milk sales reached RMB 7,005.0 million in 2021, compared to RMB 6,020.2 million in 2020, indicating a significant growth in this segment[139]. - The Group's total revenue from raw milk sales increased by 16.4% year-on-year to RMB7,005.0 million during the Reporting Year, up from RMB6,020.2 million in 2020[141]. - The average selling price (ASP) of raw milk grew by 6.8% year-on-year to RMB4.41/kg, compared to RMB4.13/kg in 2020[142]. - Total sales volume of raw milk increased by 8.9% year-on-year to approximately 1.59 million tons, up from 1.46 million tons in 2020[142]. - Gross profit for the dairy farming business was RMB2,534.9 million, reflecting a 3.1% increase year-on-year, while the gross profit margin decreased to 36.2% from 40.8%[153]. Operational Growth - The herd size increased to 353,793 heads, a significant year-on-year increase of 43.0%[27]. - The Company successfully completed acquisitions of Zhongyuan Muye and Fuyuan International, adding approximately 80,000 heads of dairy cows[31]. - Modern Dairy achieved a historic breakthrough in raw milk sales, reaching 1.59 million tons during the reporting year, marking a significant step towards the strategic goal of "doubling herd size and milk production"[54]. - The Group's herd size significantly increased following the acquisition of Fuyuan International, strengthening its competitive position in the dairy farming industry in China[136]. - The Group plans to increase its dairy herd to over 500,000 heads by 2025, with an expected annual output of 3.6 million tons of fresh milk[197]. - The Group added approximately 2,157 employees due to mergers and acquisitions during the reporting year, increasing total employees to about 6,772[196]. Product Quality and Innovation - The Group's pure milk was awarded the Gold Prize of Monde Selection for the eighth consecutive year, indicating high quality recognition[31]. - Modern Dairy's High Calcium Milk contains 125 mg of calcium per 100 ml, enriched with Vitamin D to enhance calcium absorption, and has won the Gold Award at Monde Selection for two consecutive years[39]. - The Holstein Pure Milk product contains 3.2 g of high-quality milk protein per 100 ml, providing essential nutrition with a rich taste[38]. - The company has expanded its product line to include innovative offerings such as A2 DNA Milk, which is compatible with human nutrient absorption[37]. - Modern Dairy maintains stringent quality standards for raw milk, with somatic cell counts of less than 150,000 cells per ml, significantly lower than the PRC's 600,000 cells and the EU's 400,000 cells[103][104]. - The Group's milk quality indicators exceed EU standards, with strict monitoring throughout the raw milk production process to ensure compliance[116]. Strategic Initiatives - The company launched the "Five-Year Lead Plan" to outline a new development blueprint for the dairy industry during the "14th Five-Year Plan" period[52]. - The Group is committed to becoming the largest dairy farming group globally with the most complete industry chain and strongest business capability[70]. - The Group's strategy includes building a smart, eco-friendly, and well-branded ecological farm to enhance competitiveness in raw milk quality and pricing[132]. - The company is committed to high-quality development and aims to integrate breeding, farming, and processing to seize industry opportunities and enhance internal efficiency[199]. - The Group is exploring new business opportunities in the feed sector, beef cattle business, and trading platform business to enhance its competitive advantages[197]. Financial Management and Investments - The Company issued bonds of US$500 million with a coupon of 2.125%, due in 2026, attracting significant attention from the capital market[31]. - The Group successfully issued US$500 million in bonds with a 2.125% interest rate due in 2026, with proceeds used for refinancing and general corporate purposes[130]. - The Group plans to utilize the net proceeds of approximately RMB 1,295 million from the issuance of new shares for infrastructure development, herd expansion, potential acquisitions, and general working capital[129]. - The total interest-bearing borrowings of the Group amounted to RMB 8,494.7 million, a significant increase of 50.6% from RMB 5,642.3 million in 2020[176]. - The net gearing ratio as of December 31, 2021, was 56.1%, an increase of 2.7 percentage points from 53.4% in 2020[173]. Employee Welfare and Corporate Responsibility - The average salary of employees increased by up to 10%, significantly higher than the market average, as part of a comprehensive remuneration incentive policy[66]. - Modern Dairy launched the "Happiness Program," introducing various measures to enhance employee satisfaction and ensure they benefit from corporate profits[64]. - The company established a multi-dimensional welfare system for employees, increasing vacation types to 20 and offering 25 welfare programs across four categories[67]. - The Group emphasizes social responsibility by promoting local economic development and implementing poverty alleviation measures in farming areas[192].
现代牧业(01117) - 2021 - 年度财报